Goldman Sachs Investment Research Division for 2026 graduates is approaching!

The investment research department of foreign investment banks (hereafter "foreign banks") is a division that provides analysis reports on securities and markets primarily to institutional investors, asset management companies, and internal sales and trading divisions. Also known as the "Research Division," it conducts research and analysis across a wide range of topics including stocks, bonds, foreign exchange, commodities, and macroeconomics.

This article outlines the specific job responsibilities, organizational structure, and career paths within investment research departments at foreign banks.

2026 Summer Internship Information!> 【Goldman Sachs】2026 Global Investment Research | Summer Analyst

Other Research Positions

【PIMCO】Product Associate, Equity/Asset Allocation
【BlackRock】BlackRock Investment Institute, Macro Strategist, Associate
【Bank of America】Equity Research Associate, Consumer
【Citigroup】Equity Research Senior Associate, BioTech, AVP, New York, NY
【Barclays】Equity Research VP Auto Distributors

1. Role of the Investment Research Department

1-1. Providing Information to Institutional Investors

The investment research department of foreign banks issues analytical reports and investment decisions (such as ratings and target prices) on stocks, bonds, and other financial products, primarily to the following clients:

• Asset management companies (mutual funds, ETFs, hedge funds, etc.)
• Institutional investors such as pension funds and insurance companies
• Family offices and private banking divisions for high-net-worth individuals (major clients)

These clients use research reports to make trading decisions and gain market outlook. The research department functions as an "external information source," essentially serving as the intellectual infrastructure connecting foreign banks with investors. An important part of the job also involves explaining research content and answering questions through client meetings and conference calls.

1-2. Supporting Internal Sales and Trading

Research department reports are also used by internal sales and traders. For equity sales in particular, they thoroughly read the latest reports prepared by the research department and provide information to clients via phone or online meetings, which leads to stock trading orders. Similarly in bonds, foreign exchange, and commodities, the research department's assessments (market outlook, risk analysis, etc.) serve as references for trading strategies.

1-3. Strengthening the Bank's Overall Brand

Research reports from foreign banks are often featured in industry papers, television, news sites, and other media, influencing the market with statements like "XX Securities issues bullish report on YY industry."

Having excellent analysts and strategists contributes to enhancing the overall brand power of the investment bank. Therefore, investing in the research division is extremely important not only for improving customer satisfaction but also for public relations effects

2. Organizational Structure and Business Operations

Investment research departments are typically divided into teams based on covered asset classes or analytical themes. They are often broadly segmented into "Equity Research," "Fixed Income Research," "Macro Research," "Credit Research," and "Foreign Exchange & Commodity Research," with specific organizations varying by securities companies and banks.

2-1. Equity Research

• Sector-based responsibility: Analysts are assigned to specific industries such as automotive, technology, finance, real estate, retail/consumer goods, healthcare, etc.
• Job responsibilities: Financial analysis of assigned companies, meetings with management, reviewing IR materials and earnings presentations, researching industry trends and competitors, stock valuation using models (such as DCF), setting ratings (Buy, Hold, Sell), etc.
• Deliverables: Company reports (quick updates after earnings announcements, comprehensive company analysis reports, industry trend summaries), investor briefings.

2-2. Fixed Income Research

• Target assets: Government bonds, corporate bonds, municipal bonds, financial bonds, high-yield bonds, bonds with options, etc.
• Job responsibilities: Analyzing interest rate trends, corporate credit risk, monitoring rating trends, evaluation using credit spreads, and making investment decisions based on macroeconomic and policy rate outlooks.
• Deliverables: Weekly/monthly reports on bond and credit markets, analysis reports on individual issuers.

2-3. Macro Research / Strategy

• Target areas: Economic indicators, monetary policy, foreign exchange trends, regional markets (developed/emerging countries), etc.
• Job responsibilities: Forecasting central bank policy rates, GDP and inflation rate outlooks, scenario analysis for exchange rates, strategic proposals for equity and bond markets (e.g., "equity risk will increase over the next 6 months").
• Role: Working with equity and bond analysts to provide a "big picture" view of the overall market and investment strategy ideas to clients. Essentially serves as the "command center" for the entire research division.

2-4. Others (Foreign Exchange, Commodities, Credit, etc.)

• Foreign Exchange Research: Outlook for major currency pairs such as USD/JPY and EUR/USD. Creating reports based on trade balances, interest rate differentials, central bank trends, etc.
• Commodity Research: Supply and demand analysis and price forecasts for oil, natural gas, metals, agricultural products, etc., considering geopolitical risks and weather factors.
• Credit Research: Specialized analysis focusing on credit risk assessment of corporations, financial institutions, and structured products (ABS, CDOs, etc.).

3. Differences from Japanese Securities' Research Divisions

1. Breadth of Global Coverage

   • Foreign banks often cover overseas companies and global trends, with analysis targets extending to companies and markets worldwide.
   • Japanese securities firms tend to have extensive coverage of domestic listed companies but may also conduct overseas research through foreign branches or affiliates.

2. Differences in Client Base

   • Foreign bank research frequently caters to internationally diverse clients such as hedge funds and foreign institutional investors. There are significantly more opportunities for reports and presentations in English.
   • Japanese securities firms tend to have domestic pension funds and wealthy individuals as main clients, with greater demand for Japanese-language reports and domestic corporate information.

3. Incentives and Compensation Systems

   • Foreign banks have a stronger tendency for bonuses to vary based on individual research analyst performance (appeal to clients, rating rankings, etc.).
   • While Japanese securities firms are also moving toward merit-based systems, their performance-linked compensation is often not as high as at foreign banks.

4. Work Style and Pace

   • Research divisions at foreign banks typically have a smaller but elite group of analysts, with each person having broader responsibilities and discretion, requiring a faster-paced work style.
   • Japanese firms relatively often have larger teams, and typically operate with a headquarters-centered structure rather than coordinating with overseas offices.

4. Career Path

4-1. Early Career Stage

• Analyst/Associate Position: As a junior staff member, you're assigned to specific sectors or themes. Main duties include creating earnings reports, updating models, and gathering information, often supporting senior analysts.
• Skill Development: You learn financial statement analysis, valuation methods, Excel model building, and presentation creation through practical experience. There are many opportunities for conference calls and report writing in English.

4-2. Mid-level to Senior

• Senior Analyst / Vice President (VP) Level: As a lead analyst for a sector or asset class, you create reports while directing a team. Client meetings, conference appearances, and speaking engagements increase, making you the public face for information dissemination.
• Evaluation Criteria: At foreign banks, receiving high rankings in analyst surveys like "Institutional Investor (II)" or "AsiaMoney" increases your external visibility and leads to greater recognition both inside and outside the company.

4-3. Management and Career Transitions

• Managing Director (MD) Level: You oversee large sector groups (e.g., all technology, all finance) or regions, determining the overall direction of research. This position also carries organizational management responsibilities.
• Career Paths to Other Divisions/Companies: After building a track record in research, some move to investment funds or asset management companies to join the "investment side" making actual investment decisions. Others may join the Investment Banking Division (IBD) for M&A advisory work.

5. Required Skills and Knowledge

1. Financial Analysis and Valuation

   • Skills in financial statement analysis (P&L, BS, CF) and model building (DCF, multiple valuation) are essential. Having CPA or CFA (Chartered Financial Analyst) certifications is advantageous.

2. Market and Economic Knowledge

   • Understanding not only your assigned sector but also macroeconomic trends, monetary policy, and relationships with other industries is necessary. Knowledge of daily fluctuating interest rates and currency mechanisms is also required.

3. Communication and Presentation Skills

   • With frequent information sharing to clients and internal sales teams, concise and clear explanatory abilities are required. High-level communication skills in both English and Japanese are essential.

4. Information Gathering and Filtering Ability

   • Conducting interviews with management and industry contacts to comprehensively collect quantitative and qualitative information that affects stock and bond prices. The ability to quickly identify important points from large amounts of information is crucial.

5. IT Skills and Data Analysis

   • Proficiency with Excel, Bloomberg terminals, and programming languages like Python or R enables more sophisticated research. Recently, integration with technology fields such as machine learning and automated report generation has been advancing.

6. Patience and Accuracy

   • Report deadlines are strict, and working late into the night during earnings seasons is not uncommon. Small mistakes can damage credibility, so accuracy and perseverance are required.

Summary

The investment research department serves as a key division that supports institutional investors and internal sales & trading departments as specialists in corporate and market analysis, contributing to investment decisions and management strategies. Covering a wide range, with analysis from a global perspective, it requires English proficiency and financial analysis skills, as well as concentration and accuracy in handling vast amounts of information.

The appeal also includes the speed and high level of discretion unique to foreign banks, and the ability to experience a high presence with clients and both inside and outside the organization. On the other hand, it can easily become demanding work requiring high performance, making thorough knowledge accumulation and self-improvement essential. Career-wise, if you can achieve top-level industry recognition as a senior analyst, diverse possibilities open up, including internal promotion or transitioning to asset management companies. The research division of foreign banks can be described as an exciting professional field where you can feel the cutting edge of global financial markets while developing deep expertise.

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Consult with a "top advisor" as soon as possible to discover your path to success and achieve your goals! If you're interested in individual advisory services, free consultations are available! After registration, you can access free consultations through the "Free Consultation Chat" in "My Page." For immediate questions or consultations, you can also use the chat feature in the bottom right of the page!

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